Five Lessons to Learn From Traditional B2B Marketing




Kikuyu Daniels
Technology Licensing Associate
Massachusetts Insti...
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offe...
Business to Consumer                 Business to Business

 Marketing Culture                       Manufacturing/Tech Cul...
Business buyers start buying process with a
need
◦ no creation of basic wants
  necessary


So, we must:
◦ Know business d...
Business buyers are a “web” of decision
makers within a firm
◦ No one decision maker


So, we must:
◦ Find a champion
◦ Cl...
Can no longer think if we “build it and they
will come”
◦ Shorter product lifecycles
◦ Increased global competition


So, ...
Must market to the value chain
◦ Businesses like known entities
◦ Strive to create value and manage value at each link



...
Value primarily in use (not brand),
quantifiable
◦ Once called Industrial
  Marketing
◦ Trend to quantify


So, we must:
◦...
Some Misconceptions               Marketing Realities
(based on valid data from AUTM)

  70% of university licenses       ...
Dr. James Anderson of the Kellogg School of Management at
  Northwestern University has extended the definition of “value:...
A UVP is a succinct statement of the uniqueness of a
product (or IP) that sets it apart from all others.
◦ Similar to VC e...
Start with case/invention titles (often first
things seen or described)

Should answer the question “What is it?”

May als...
Rat neural cell line system
 Self-doped microphase separated block
 copolymer electrolyte
 Electric Display Device

Is the...
Devices for Improved Computer-Assisted
 Laser Surgery
 Automobile navigation system using real time
 spoken driving instru...
B2B Buyers are different, they:
◦ Start process with a need
◦ “Web” of multiple decision makers inside a firm
B2B Marketer...
A UVP is a succinct statement of the
uniqueness of a product (or IP) that sets it
apart from all others

Our UVP statement...
Should answer the question “What is it?”

May also convey some benefit through its use
(What does it do?)
Your turn to judge!

For each of 4 descriptions
◦ Identify the value proposition
◦ Rate it on a scale of 1 -10 (10 is hard...
Conventional sigma-delta analog-to-digital conversion
(ADC) systems may be significantly enhanced by using a
recently deve...
The present invention provides for a method
and kits for stabilizing mammalian membrane
protein using short surfactant pep...
Settling time is an important performance metric in the
  phase-locked loop (PLL) frequency synthesizers. To
  achieve a f...
(Continued from Previous Slide)
  … comes at a price of increased hardware complexity and
  power dissipation, since the f...
The invention features substantially pure
nucleic acid sequences encoding wild-type or
mutant serotonin retake transporter...
What score did you
give?

Why was it difficult
to find the value
proposition in these
descriptions?


                    ...
Value = Use; Title + statements convey:
◦ What is it?
◦ What does it do for me?
Most important point at the top!
Don’t use...
Start with benefits (they sell)
Features don’t automatically = benefits

 This technology uses a single source of
 measure...
Features                Benefits

   Features are facts          Specific to customer
   True                        needs...
Your turn!
Create a Feature / Benefit statement:
◦ Describe the most unique feature of your technology that
  solves poten...
Create a Feature / Benefit statement:

My technology is ____________________ [a
good title] and it ____________________
[d...
Unique
Value
Proposition
in action!




        BACK

               FRONT
Unique
Value
Proposition
in action!                                Direct Mail




  Useful for verbal
  communications to...
Benefits sell, features don’t
 Use “So that…” to convert a feature to a
 feature/benefit statement
 Use feature, benefit s...
Companies and industries:
   http://www.hoovers.com
   http://www.frost.com
People:
   http://scholar.google.com/schhp?hl=...
Marketing Research
 Demonstration in progress
THE END
Conventional sigma-delta analog-to-digital conversion
(ADC) systems may be significantly enhanced by using a
recently deve...
The present invention provides for a method
and kits for stabilizing mammalian membrane
protein using short surfactant pep...
Settling time is an important performance metric in the
  phase-locked loop (PLL) frequency synthesizers. To
  achieve a f...
(Continued from Previous Slide)
  … comes at a price of increased hardware complexity and
  power dissipation, since the f...
The invention features substantially pure
nucleic acid sequences encoding wild-type or
mutant serotonin retake transporter...
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing
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Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing

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Is the communication of value important in the licensing of patented inventions?
Most technology transfer professionals would answer that it is indeed important. When these same professionals are asked how much time they spend marketing patented inventions relative to their involvement in other licensing related activities, there is often hesitation before an answer is offered. Most technology transfer professionals really do not think of the work they perform as involving “marketing” per se. The daily demands of evaluating invention disclosures, patenting inventions, and negotiating license agreements often overshadow the outreach or communication efforts necessary to find new companies suitable to license the inventions. Even so, the importance of identifying and communicating the value of the intellectual property to companies who demonstrate the ability to turn the inventions into commercially successful products as a part of the overall licensing business model simply cannot be overstated.

The specific subset of marketing that involves communication of value for the purposes of demand creation is called marketing communications. This presentation highlights close yet often overlooked relationships between basic concepts of traditional B2B marketing communications and the marketing of early stage technology for purposes of licensing inventions for use in the market as new products and processes. It was developed with University Technology Transfer in mind, but the concepts and techniques presented may prove useful for non-profits, government agencies, and others who license their intellectual property to companies for further development into commercial products.

I gave this presentation in a workshop format at the Massachusetts Institute of Technology TLO (Technology Licensing Office) in April of 2009. I have since revised it and placed here for public viewing. I am interested in any feedback and comments, especially from tech transfer and technology marketing professionals. Please post your comments or private message me with your thoughts regarding this topic and on the presentation itself.

Many thanks to Jane Muir, Associate Director of the Office of Technology Licensing at University of Florida, for sharing with me her wealth of experience in teaching marketing and communications to Technology Transfer Professionals.

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Marketing Value Proposition and Positioning of Early Stage Technology: Five Lessons to Learn From Traditional B2B Marketing

  1. 1. Five Lessons to Learn From Traditional B2B Marketing Kikuyu Daniels Technology Licensing Associate Massachusetts Institute of Technology April 16, 2009 PUBLIC VERSION
  2. 2. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large ◦ AMA Definition est. in 2007 Definition expanded from prior years to encompass B2B as well as B2C marketing
  3. 3. Business to Consumer Business to Business Marketing Culture Manufacturing/Tech Culture Market to end of chain Market to value chain * More perceptual proposition More technical proposition Value primarily in brand Value primarily in use, quantifiable * Large customer segments Small number of customers Smaller-unit transactions Large-unit transactions Transaction linkage Process linkage * More direct purchase Complex buying sequence * Consumer decides Web of decision participants * Source: Institute for the Study of Business Markets (ISBM)
  4. 4. Business buyers start buying process with a need ◦ no creation of basic wants necessary So, we must: ◦ Know business drivers (or at least general needs/ problems of industry) ◦ Provide solutions (not sell)
  5. 5. Business buyers are a “web” of decision makers within a firm ◦ No one decision maker So, we must: ◦ Find a champion ◦ Clearly demonstrate & communicate value ◦ Provide tools & support to our champ
  6. 6. Can no longer think if we “build it and they will come” ◦ Shorter product lifecycles ◦ Increased global competition So, we must: ◦ Not wait for firms to come to us with their need ◦ Identify the value in our offer ◦ Find ways to identify firms who value our offering
  7. 7. Must market to the value chain ◦ Businesses like known entities ◦ Strive to create value and manage value at each link So, we must: ◦ Not jump to end use ◦ Use market research to get industry drivers ◦ Use idea of portfolio of related IP Source: Institute for the Study of Business Markets (ISBM)
  8. 8. Value primarily in use (not brand), quantifiable ◦ Once called Industrial Marketing ◦ Trend to quantify So, we must: ◦ Make usefulness (added value) really clear ◦ Build value-oriented relationships
  9. 9. Some Misconceptions Marketing Realities (based on valid data from AUTM) 70% of university licenses True, but many universities from sources identified don’t market; useful when by inventors, thus no no prospects; helps in need to market communicating value Marketing = Selling Who Misleading b/c no identity with selling, yet it makes us wants to sell? Our successful; Also, external technology sells itself factors make it necessary Those interested will Most are not read in full; understand our on-line Understanding =/ value; technical descriptions Reader may or may not have science background
  10. 10. Dr. James Anderson of the Kellogg School of Management at Northwestern University has extended the definition of “value:” Value in business markets is the worth in monetary terms or the technical, economic, service and social benefits a customer firm receives in exchange for the price it pays for a market offering. Worth = Use
  11. 11. A UVP is a succinct statement of the uniqueness of a product (or IP) that sets it apart from all others. ◦ Similar to VC elevator pitch The UVP statement will often contain quantitative statements about the uniqueness of a product (or IP). Precisely WHY should customers do business with you? ◦ Distinguish from what is already out (Most, many… etc.) Competitive analysis will help you develop your UVP and test the validity of the claims you make about your product (or IP). ◦ Competitive advantage is a good start Source: http://www.marketingexperiments.com
  12. 12. Start with case/invention titles (often first things seen or described) Should answer the question “What is it?” May also convey some benefit through its use (What does it do for me?)
  13. 13. Rat neural cell line system Self-doped microphase separated block copolymer electrolyte Electric Display Device Is there value in these titles? Are you compelled to read further?
  14. 14. Devices for Improved Computer-Assisted Laser Surgery Automobile navigation system using real time spoken driving instructions Minimally-Invasive Tool for Intraocular Lens Removal Are these more effective? What makes them so?
  15. 15. B2B Buyers are different, they: ◦ Start process with a need ◦ “Web” of multiple decision makers inside a firm B2B Marketers are different, they: ◦ Can not think if we “build it and they will come” ◦ Must market to the value chain B2B once called Industrial Marketing ◦ Value primarily in use (not brand), quantifiable
  16. 16. A UVP is a succinct statement of the uniqueness of a product (or IP) that sets it apart from all others Our UVP statement will consist of a good title and the invention’s benefits (the value) ◦ Note: we’ll talk more about benefits later Source: http://www.marketingexperiments.com
  17. 17. Should answer the question “What is it?” May also convey some benefit through its use (What does it do?)
  18. 18. Your turn to judge! For each of 4 descriptions ◦ Identify the value proposition ◦ Rate it on a scale of 1 -10 (10 is hard) regarding how easy or difficult it is to ascertain the value proposition. ◦ Write your rating down (to avoid group think)
  19. 19. Conventional sigma-delta analog-to-digital conversion (ADC) systems may be significantly enhanced by using a recently developed novel design approach. The technique involves instrumenting an ADC's modulator subsystem with an observation circuit to provide quantized estimates of the modulator's state values. This observation circuit provides a limited precision estimate of the modulator state values (delay stages), but leaves the modulator's input/output relationship unchanged. A separate processing function is performed on these state estimates—which are filtered separately—and the result is added to the output of the decimator subsystem. A closer approximation to the input value than would otherwise be available is thus achieved. Value? (1-10)
  20. 20. The present invention provides for a method and kits for stabilizing mammalian membrane protein using short surfactant peptides. The mammalian membrane protein can be a G protein-coupled receptor. Value? (1-10)
  21. 21. Settling time is an important performance metric in the phase-locked loop (PLL) frequency synthesizers. To achieve a fast settling time, the PLL loop bandwidth should be increased. In the widely used charge pump PLLs, however, the loop bandwidth cannot be undoubtedly large, but rather, is limited to about 10% of the reference frequency to maintain the loop stability. Due to the 10% bandwidth rule, for a given frequency resolution, fractional-N PLLs have a faster settling time than integer-N PLLs. This is because the former has a higher reference frequency than the latter. The faster settling of the fractional-N PLL, however, ... (Continued on Next Slide)
  22. 22. (Continued from Previous Slide) … comes at a price of increased hardware complexity and power dissipation, since the fractional-N frequency synthesis necessitates the use of phase interpolators or high-order modulators to suppress the steady-state fractional spurs. The invention is a new architecture of a fastlock PLL frequency synthesizer. The architecture has the wide loop bandwidth of the fractional-N PLL in the tracking state and the narrow loop bandwidth of the integer-N PLL in the locked state. The proposed architecture can have fast settling time of the fractional-N PLL, while maintaining the same hardware complexity as the integer-N PLL. The hybrid PLL architecture is essentially an integer-N PLL which is faster than the normal integer-N PLL. Value? (1-10)
  23. 23. The invention features substantially pure nucleic acid sequences encoding wild-type or mutant serotonin retake transporter (SERT) polypeptides, as well as the polypeptides themselves. The invention also features methods for identifying modulators of the biological activity of a SERT and for identifying if such a modulator has a secondary target. In addition, the invention features methods for treating a condition in a subject. Value? (1-10)
  24. 24. What score did you give? Why was it difficult to find the value proposition in these descriptions? Click here to see again and discuss
  25. 25. Value = Use; Title + statements convey: ◦ What is it? ◦ What does it do for me? Most important point at the top! Don’t use vague words or statements w/o qualification No long list of features without benefits One feature/benefit per sentence More ->
  26. 26. Start with benefits (they sell) Features don’t automatically = benefits This technology uses a single source of measurement data (GPS) as input information Compared to: Simple to implement and maintain due to readily accessible, single source of measurement data (GPS) as input information
  27. 27. Features Benefits Features are facts Specific to customer True needs Can be proven Contain value Provide a reason to buy Used in science Used in business Readily accessible, single source of SO THAT… measurement data Simple to implement (GPS) as input and maintain information Feature Benefit
  28. 28. Your turn! Create a Feature / Benefit statement: ◦ Describe the most unique feature of your technology that solves potential licensee’s problem/satisfies need ◦ Pick a single feature ◦ Use “so that…” to write the associated benefit that explains why would the potential licensee care about this feature ◦ Remember UVP – select aspects not currently offered by other technologies Your UVP will be the combination of these benefits
  29. 29. Create a Feature / Benefit statement: My technology is ____________________ [a good title] and it ____________________ [describe the unique feature], so that _______________________ [describe the benefit provided]. Volunteers to share examples?
  30. 30. Unique Value Proposition in action! BACK FRONT
  31. 31. Unique Value Proposition in action! Direct Mail Useful for verbal communications too (i.e., cold calling and “elevator” pitches) Multi-media
  32. 32. Benefits sell, features don’t Use “So that…” to convert a feature to a feature/benefit statement Use feature, benefit statements to construct your UVP Put the most salient benefit first (and in the title if you can) Still don’t know what to say?
  33. 33. Companies and industries: http://www.hoovers.com http://www.frost.com People: http://scholar.google.com/schhp?hl=en&tab=ws http://www.google.com/patents?hl=en http://www.linkedin.com Single market or product areas: http://www.ibisworld.com (Manufacturing & Service Industries) http://www.windover.com (Medical Devices and Pharmaceutical) http://www.worldpharma.com (World Pharmaceutical) Many more! University libraries may have subscriptions to these tools available for your use for free!
  34. 34. Marketing Research Demonstration in progress
  35. 35. THE END
  36. 36. Conventional sigma-delta analog-to-digital conversion (ADC) systems may be significantly enhanced by using a recently developed novel design approach. The technique involves instrumenting an ADC's modulator subsystem with an observation circuit to provide quantized estimates of the modulator's state values. This observation circuit provides a limited precision estimate of the modulator state values (delay stages), but leaves the modulator's input/output relationship unchanged. A separate processing function is performed on these state estimates—which are filtered separately—and the result is added to the output of the decimator subsystem. A closer approximation to the input value than would otherwise be available is thus achieved. Click forNEXT highlights
  37. 37. The present invention provides for a method and kits for stabilizing mammalian membrane protein using short surfactant peptides. The mammalian membrane protein can be a G protein-coupled receptor. It answers the question “what is it?” but it does not say why you should want to use it. Click for NEXT highlights
  38. 38. Settling time is an important performance metric in the phase-locked loop (PLL) frequency synthesizers. To achieve a fast settling time, the PLL loop bandwidth should be increased. In the widely used charge pump PLLs, however, the loop bandwidth cannot be undoubtedly large, but rather, is limited to about 10% of the reference frequency to maintain the loop stability. Due to the 10% bandwidth rule, for a given frequency resolution, fractional-N PLLs have a faster settling time than integer-N PLLs. This is because the former has a higher reference frequency than the latter. The faster settling of the fractional-N PLL, however, ... (Continued on Next Slide) Click for highlights NEXT
  39. 39. (Continued from Previous Slide) … comes at a price of increased hardware complexity and power dissipation, since the fractional-N frequency synthesis necessitates the use of phase interpolators or high-order modulators to suppress the steady-state fractional spurs. The invention is a new architecture of a fastlock PLL frequency synthesizer. The architecture has the wide loop bandwidth of the fractional-N PLL in the tracking state and the narrow loop bandwidth of the integer-N PLL in the locked state. The proposed architecture can have fast settling time of the fractional-N PLL, while maintaining the same hardware complexity as the integer-N PLL. The hybrid PLL architecture is essentially an integer-N PLL which is faster than the normal integer-N PLL. Click for highlights NEXT
  40. 40. The invention features substantially pure nucleic acid sequences encoding wild-type or mutant serotonin retake transporter (SERT) polypeptides, as well as the polypeptides themselves. The invention also features methods for identifying modulators of the biological activity of a SERT and for identifying if such a modulator has a secondary target. In addition, the invention features methods for treating a condition in a subject. Click for highlights RETURN

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